July 27, 2012

NEW YORK -- JPMorgan Chase & Co, the biggest U.S. bank, announced a broad management shakeup among the executives just below Jamie Dimon, signaling that the bank is preparing for life after its famed chief executive officer.

The moves were being lined up earlier this year, but were delayed when multibillion-dollar losses surfaced in a portfolio of credit derivatives, said bank spokesman Joseph Evangelisti.

The losses, which came from bets known as the "London Whale" trades, were a huge black eye for Dimon, spurring outsiders to argue even more vociferously that the bank needs to think hard about who will lead after him.

Dimon has fielded questions for years about his succession plans. This is the third reshuffling of his top lieutenants in three years. Dimon has said that he likes to move promising executives around to give them experience in different parts of the bank.

Mike Cavanagh, 46, head of Treasury and Securities Services, and Daniel Pinto, 49, head of EMEA and Global Fixed Income, will become co-CEOs of the Corporate & Investment Bank, according to the announcement from JPMorgan. Cavanagh, who was once chief financial officer for the bank, will oversee lending and investment banking services like merger advisory. Pinto will oversee trading businesses.

Jes Staley, 55, currently CEO of the Investment Bank, will become chairman of the Corporate & Investment Bank, a new position.

Gordon Smith, 53, will have mortgage lending and retail banking added to his remit, giving him oversight of all consumer banking businesses.

The former American Express Co executive currently oversees credit cards and auto lending. For now, Smith will run the business together with Todd Maclin, 56, but in 2013, Maclin will become a chairman of the consumer business.

Frank Bisignano, 52, who was put in charge of overhauling the mortgage business last year, in addition to his role as chief administrative officer of the bank, will become co-chief operating officer for JPMorgan as Smith takes on the mortgage business.

Bisignano will share the COO post with Matt Zames, 41, who will remain head of the Chief Investment Office and Mortgage Capital Markets.

In May, Zames was put in charge of the CIO office, the site of the London Whale trades. He was given responsibility for unwinding the losing portfolio and overhauling the office.

(Reporting by David Henry in New York; Editing by Gerald E. McCormick, John Wallace and Lisa Von Ahn)


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